Printing company MTAG Group to list on Bursa Malaysia’s ACE market
- 17th July 2019
- Posted by: Mtag Group
- Category: News & Events
KUALA LUMPUR: Printing and materials converting specialist MTAG Group Bhd (MTAG) seeks to list on Bursa Malaysia ACE market in two months.
Johor-based MTAG specialises in printing of labels and stickers and customized converting services.
MTAG has entered into an underwriting agreement with M&A Securities Sdn Bhd following the company’s initial public offering (IPO) on the local bourse.
Under the agreement, M&A Securities will underwrite new shares to be made available for the Malaysian public and its eligible directors, employees and persons who have contributed to the success of the Group.
At a recent signing underwriting ceremony, MTAG group managing director Chaw Kam Shiang said following the signing of the underwriting agreement last week, MTAG is now one step closer to be a listed company on Bursa Securities.
“The listing status enhances the Group’s reputation and credibility, accord us greater recognition amongst our investors, stakeholders, existing as well as prospective customers,” he said in a statement.
Meanwhile, the IPO proceeds allow it to acquire land for the construction of a new manufacturing plant and invest in new machinery to improve capacity and production efficiency.
Other utilisation of the proceeds from the IPO include repayment of bank borrowings, working capital and defraying listing expenses.
MTAG is scheduled to be listed on the ACE Market of Bursa Securities by September 2019.
The Group’s IPO exercise entails a public issue of 136.32 million new shares in the Group, representing 20 per cent of the Group’s enlarged share capital.
The existing shareholders of the company will also make an offer for sale of 68.16 million shares to selected investors by way of private placement.
Chaw said MTAG’s expansion shall further strengthen the company’s position, enabling it to capture the demand growth of the local label and printing industry.
Independent market report by Protégé Associates estimated the local label and printing industry to reach RM8.11 billion in 2023 from RM5.46 billion in 2018.
MTAG converts a wide range of materials such as adhesive tapes & papers, mesh, plastics, foams, and metals into predefined shapes and sizes. It is also an authorized distributor for the renowned 3M and Henkel brands together with a variety of industrial tapes and adhesive products.
MTAG has more than 20 years of experience and is currently serving more than 600 customers from various industries such as electrical and electronics, automotive, precision tooling, mechanical & engineering, and construction.
– July 14, 2019